Bulgaria and Dundee Precious Metals, the Canadian metals extraction company, will soon form a joint venture in a 25-75 per cent share-out and use it to operate the Chelopech gold mine, the Government said in a statement.

The two parties are expected to sign a memorandum for understanding to that end in a month's time. The document defines the principles for partnership in gold and copper ores extraction at the Chelopech gold mine.

In addition, the start of gold extraction activities at Chelopech presumes investments into an installation worth $155-160 million, all to be procured by the Canadian company.

Expectations are that the return on the installation investment would pay out in the first few years, the statement reads. All state outlays from the mine would flow into the Silver Pension Fund, the statement reads.

Meanwhile, it emerged that Dundee's Kroumovgrad project would likely remain frozen. One of the problems to have blocked works on the Kroumovgrad mine was the lack of an environmental impact assessment on the mine.

The news came at a time when citizens of Kroumovgrad signed up to a list in support of the Canadian project.